Marvell Technology posted quarterly results that beat expectations, supported by strong data center demand thanks to the rise of artificial intelligence. The company reported adjusted EPS of $0.80 in Q4, above the $0.79 expected by analysts, on revenue of $2.22bn, up 22% y-o-y.
Data center business largely drove this growth, with revenue of $1.65bn, up 21%. Sales in communications and other segments also rose 26%. Following the release, Marvell shares jumped about 14% in after-hours trading.
For Q1, the company forecasts revenue of about $2.4bn, above the consensus of $2.28bn, with adjusted EPS of between $0.74 and $0.84. Chief Executive Matt Murphy expects growth to accelerate during FY 2027, driven by continued strength in the data center market and a record level of orders.
Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows:
- data centers (72.2%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.;
- enterprise networks (10.9%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises;
- telecom network infrastructures (5.9%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.;
- consumer electronics (5.5%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals;
- automotive and industrial (5.5%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems.
Net sales are distributed geographically as follows: the United States (16.6%), China (43.5%), Taiwan (9.7%), Singapore (7.8%), Thailand (5.3%), Japan (2.9%), Malaysia (2.5%), Finland (2%) and other (9.7%).
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